In the world of trading, profit potential often draws people in, but risk management is what keeps traders in the game. One of the most common mistakes beginners make is focusing solely on potential returns while ignoring the risks involved. Successful traders always define their risk before entering a trade, often using stop-loss orders to limit potential losses. They also avoid overleveraging, which can quickly wipe out an account. Risk management is not just a strategy—it’s a mindset. By protecting capital and controlling exposure, traders can survive losing streaks and stay consistent in the long term.